Which of the following was the weakness of the Bretton Woods system?

QUESTION

Which of the following was the weakness of the Bretton Woods system?

A. It could be wrecked by heavy borrowings from the World Bank and the International Monetary Fund.

B. It could not work if the U.S. dollar was under speculative attack.

C. The inflexibility of the system resulted in high unemployment.

D. It forced fiscal and monetary discipline on participating nations.

E. It allowed the countries to engage in competitive currency devaluations.

ANSWER

B